Edit View Window Help i ch14.pdf 14-24 Test Bank for Intermediate Accounting, Sixteenth Edition 89. The December 31, 2017, balance sheet of Hess Corporation includes the following items: 9% bonds payable due December 31, 2026 $5,000,000 Unamortized premium on bonds payable 135,000 The bonds were issued on December 31, 2016, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2018, Hess retired $2,000,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds? Ignore taxes. a $94,000. b. $54,000 c. $93,000 d $100,000 Ans c. Lo 2, Bloom AP, Dimicuty omcut, Min 4, AACGB: Analyc, AICPA BB: None, AICPA FN: Meauurement, AICPA PC: Probiem Soving, IMA Reporting, iPRG: None On January 1, 2012, Hernandez Corporation issued $18,000,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Hemandez at 105. Hernandez has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). 90 On December 31, 2018, when the fair value of the bonds was 96, Hemandez repurchased $4,000,000 of the bonds in the open market at 96, Hernandez has recorded interest and amortization for 2018. Ignoring income taxes and assuming that the gain is material, Hemandez should report this reacquisition as a a loss of $196, b. a gain of $196,000 c. a loss of $244,000 d. a gain of $244,000 AnS . con Al pifeuny Dimour in 4 AACDB nayge ACPA Be None, AICPA N eaurement AlceA PC Prodem daving aua Reporing. iFRS None